Companhia Siderúrgica Nacional (SID) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -5.79%
• EPS Growth: -5.30%
• Country: US
• Employees: 24,924
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): >-0.01
• Shares Outstanding: 1,326,094,000
• 10 Day Avg. Volume: 3,148,662
• 30 Day Avg. Volume: 2,236,455
• PEG Ratio: -0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 3.75
• Enterprise Value/Market Cap: 3.86
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 1.26
• 1Y Price Target: $1.40
• Price Target Upside: -14.11% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $1.50 ▼(-7.98% Downside)

The overall stock score of 51 reflects significant financial challenges, including high leverage and negative cash flow, despite operational improvements and reduced leverage highlighted in the earnings call. Technical indicators suggest neutral momentum, while valuation metrics indicate potential overvaluation.

Positive Factors

Operational Efficiency

The significant growth in EBITDA and improved margins demonstrate CSN's operational efficiency, which can lead to sustained profitability and competitive advantage.

Leadership Restructure

The leadership restructure aims to enhance operational oversight and efficiency, potentially strengthening CSN's competitive position in key sectors.

Leverage Reduction

The reduction in leverage indicates improved financial discipline, enhancing CSN's financial stability and reducing risk from high debt levels.

Negative Factors

High Financial Expenses

Increased financial expenses can strain cash flow and limit investment capacity, impacting long-term growth and financial health.

Negative Cash Flow

Negative cash flow indicates challenges in generating sufficient cash from operations, which can hinder investment and debt servicing capabilities.

Steel Market Challenges

Increased competition in the steel market may pressure margins and require strategic adjustments, affecting CSN's market position and profitability.

Companhia Siderúrgica Nacional Business Overview & Revenue Model

Company Description

Companhia Siderúrgica Nacional (SID) is a Brazilian steel manufacturer and one of the largest integrated steel producers in Latin America. Founded in 1941, the company operates in various sectors, including steel production, mining, and logistics. Its core products encompass flat and long steel products, such as hot-rolled, cold-rolled, and galvanized sheets, in addition to iron ore and other raw materials essential for steelmaking.

How the Company Makes Money

Companhia Siderúrgica Nacional generates revenue primarily through the production and sale of steel products, which constitute its main revenue stream. The company supplies a diverse range of flat and long steel products to various industries, including construction, automotive, and machinery. In addition to steel products, the company earns income from the mining and sale of iron ore, which is both used in its own production processes and sold to external customers. Significant partnerships with automotive and construction firms bolster its sales, while long-term contracts often provide a stable revenue base. Additionally, SID benefits from its integrated logistics operations, which facilitate transportation and reduce costs, enhancing overall profitability. Fluctuations in global steel prices and demand, as well as operational efficiencies, also play crucial roles in the company's financial performance.

Companhia Siderúrgica Nacional Financial Statement Overview

Summary

Companhia Siderúrgica Nacional is facing financial difficulties with declining profitability and high leverage. While there is some revenue growth, the company struggles with negative net income and cash flow challenges. The high debt levels pose a risk to financial stability, and improvements in operational efficiency and profitability are needed to enhance financial health.

Income Statement

The income statement shows a challenging period for Companhia Siderúrgica Nacional, with a negative net profit margin of -5.23% in TTM, indicating losses. Revenue growth is modest at 1.63% TTM, but the gross profit margin has decreased from previous years, reflecting pressure on profitability. The EBIT and EBITDA margins are relatively stable, but lower than historical highs, suggesting operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 3.58 in TTM, indicating significant reliance on debt financing. The return on equity is negative, reflecting the company's inability to generate profits for shareholders. The equity ratio is low, suggesting potential risks in financial stability.

Cash Flow

Cash flow analysis shows a substantial improvement in free cash flow growth, but it remains negative, indicating cash outflows. The operating cash flow to net income ratio is low, reflecting challenges in converting income to cash. The free cash flow to net income ratio is negative, highlighting cash flow issues despite some operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.42B	43.69B	45.44B	44.36B	47.91B	30.06B
Gross Profit	12.45B	11.70B	11.30B	13.31B	22.07B	10.94B
EBITDA	6.76B	6.85B	8.58B	10.07B	23.08B	9.69B
Net Income	-1.56B	-2.59B	-318.21M	1.55B	12.26B	3.79B
Balance Sheet
Total Assets	18.93B	103.91B	91.53B	85.35B	79.38B	63.00B
Cash, Cash Equivalents and Short-Term Investments	3.28B	24.22B	17.59B	13.46B	19.30B	13.75B
Total Debt	10.00B	57.10B	45.26B	41.55B	32.57B	35.80B
Total Liabilities	15.67B	88.45B	71.84B	63.54B	56.00B	51.75B
Stockholders Equity	2.66B	12.27B	17.50B	19.49B	20.31B	9.91B
Cash Flow
Free Cash Flow	-3.41B	3.16B	2.88B	-3.33B	11.93B	7.89B
Operating Cash Flow	2.54B	8.65B	7.29B	2.04B	14.79B	9.58B
Investing Cash Flow	-2.30B	-1.12B	-4.59B	-11.45B	447.93M	-1.86B
Financing Cash Flow	-2.13B	-103.83M	1.32B	4.75B	-8.53B	1.19B

Companhia Siderúrgica Nacional Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.63
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SID, the sentiment is Neutral. The current price of 1.63 is below the 20-day moving average (MA) of 1.67, below the 50-day MA of 1.63, and above the 200-day MA of 1.55, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SID.

Companhia Siderúrgica Nacional Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIM	73 Outperform	$5.03B	22.07	5.84%	―	-16.81%	-67.68%
CMC	70 Neutral	$7.72B	93.64	1.99%	1.04%	-1.61%	-81.36%
TX	68 Neutral	$7.31B	12.73	4.80%	7.25%	-16.69%	585.38%
GGB	67 Neutral	$6.86B	13.82	5.21%	2.99%	-2.53%	-36.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CLF	54 Neutral	$7.53B	-3.89	-27.16%	―	-6.76%	-255.94%
SID	51 Neutral	$2.21B	-8.04	-10.50%	―	-5.79%	-5.30%

Companhia Siderúrgica Nacional Corporate Events

CSN Transfers Majority of MRS Logística Stake to Mining Subsidiary for R$3.35 Billion

On December 18, 2025, CSN’s board approved and executed a reorganization of its stake in rail operator MRS Logística S.A. by selling up to 11.17% of MRS’s capital to its mining subsidiary CSN Mineração (CMIN) for a total of up to R$3.35 billion, a move that shifts the rail asset from the parent to the mining arm while keeping the investment within the group. The first transaction, completed on December 18, 2025, transferred a 9.17% interest in MRS to CMIN for R$2.75 billion, and a second, already approved transaction for an additional 2% stake for R$600 million remains subject to customary regulatory and legal approvals; after these steps, CSN will retain only common shares equivalent to 13.69% of MRS’s voting capital, still bound by the existing shareholders’ agreement, signaling an internal capital reallocation and potential operational alignment between its mining and logistics businesses without fully exiting the rail concession.

CSN Announces Executive Leadership Restructure to Bolster Operations

On December 9, 2025, Companhia Siderúrgica Nacional approved the election of two new executive directors, Tufi Daher Filho for Infrastructure and Logistics and Augusto César Ferreira Lara for Steel Production, as part of a restructured Executive Board with unified terms of office lasting two years. This decision reflects strategic leadership adjustments aimed at strengthening operational oversight and efficiency in the company’s core sectors, potentially enhancing its competitive positioning in the steel and logistics industries.

CSN Reports Financial Position Changes in November 2025

On November 2025, Companhia Siderúrgica Nacional released its balance sheet showing a decrease in cash and cash equivalents from December 2024 to September 2025. This financial update indicates a shift in the company’s liquidity position, which may impact its operational strategies and stakeholder interests.

CSN Reports Strong Q3 2025 Results with First Profitable Quarter

On November 4, 2025, CSN reported its financial results for the third quarter of 2025, highlighting a net revenue of R$ 11,794 million, a 10.3% increase from the previous quarter. This growth was driven by the mining segment due to higher iron ore prices, improved cement sales, and increased logistics activities. The company achieved a net income of R$ 76 million, marking its first profitable quarter of the year, attributed to operational improvements and favorable exchange rate impacts. The adjusted EBITDA reached R$ 3,319 million, reflecting a robust performance across its diversified operations, although the steel segment faced challenges from imported materials.